Dire need of constructive crypto policies

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The head of the Bank of France said uncertainty in the crypto market demonstrates the need of a compulsory licensing strategy for the cryptocurrency companies “as quickly as possible.” The Bank of France’s governor demands for more strict licensing requirements more crypto firms in France keeping the turmoil of the crypto market in mind. On Jan 5, in Paris, Francois Villeroy de Galhau siad in a speech that France must not wait for the future EU crypto laws to accept obligatory licensing for local digital asset service providers (DASPs). As of now the crypto companies giving crypto trading and custody are needed to be “registered” with the Financial Markets Authority (AMF), the country’s market regulator. Even if or when MiCA becomes legislation and institutes a licencing regime, firms in France are now able to operate without a licence until 2026.In February, the European Parliament’s long-awaited code of conduct for cyberspace, known as MiCA, will receive its final plenary vote.

Kunji research crypto market update

After the government announced strict crypto tax policies, according to a report by the Esya Centre, a New Delhi-based think tank for technology policy, Indians transferred more than $3.8 billion in trading activity from local to international crypto exchanges. Starting in 2019, the administration of Prime Minister Narendra Modi will impose a 30% tax on cryptocurrency income in addition to a 1% tax deducted at source (TDS) on all transactions. According to government statistics, India’s current account deficit has reached an all-time high of $36.4 billion. According to a report by the Esya think tank, India’s virtual digital asset (VDA) market is “crippled” by the country’s current tax structure. TDS should be reduced from 1% every transaction to 0.1%, according to the researchers.

In the past day, Huobi’s trade volume decreased by 23% from $510 million to $395 million. In that time, the price of Huobi’s HT token dropped by almost 11%, reaching $4.67 as of this morning, East Asia time. According to data from CoinGecko, the token has decreased by over 30% in the last month. Concern has also grown over Huobi’s post-FTX reserves’ quality. Colin Wu of WuBlockchain was the first to report on the layoffs and the obligation to accept stablecoins. According to Cryptoquant, OKX and Derebit have the “cleanest” reserves among the exchanges. 

Read about: Regulatory heat and Safety measures on the rise in crypto Ecosystem

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